Nvidia’s new financial strategy does not compute
“Compute is an asset class! Compute is an asset class!” I continue to insist as I slowly shrink down and turn into a corncob | Image: Cath Virginia / The Verge, Getty Images April - 1805 Napoleon is master of Europe Only the British fleet stands before him Compute is now an asset class I see it is once again time to talk financial innovation. Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR are all working with Nvidia to put together $500 billion in financing to
Get smart on it
Nvidia's CEO is promoting the idea that computing power should be treated as a financial asset class, partnering with major investment firms to develop $500 billion in financing around this concept. The CEO has argued that chips are now "revenue-generating assets" that are "long-lived" and "productive," though he previously suggested older chip generations would have little value once newer models arrived. The strategy matters because it signals a shift toward securitizing compute infrastructure similar to mortgage-backed securities, but some experts worry this could fail if demand for chips doesn't continue growing, particularly given data center saturation and the rise of powerful open-source models requiring less computing power.
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